The Final Weeks for 2022 Contributions

Justin Hearty

With the Tax Filing Deadline quickly approaching, it’s imperative to keep your retirement contributions top of mind.

Retirement contributions are top of mind, with only a few weeks remaining until the Tax Deadline. Below we will discuss the official deadline, contribution limits, ways to optimize your benefits between company-sponsored and personal accounts and provide a glimpse into what 2023 has to offer.

When is the deadline for making 2022 contributions?

The deadline for making any 2022 IRA contributions is Tuesday, April 18th, 2023.

Even if you plan on getting an extension or already have one, this will NOT allow extra time to make 2022 contributions to your Traditional and Roth IRA.

What limits are currently in place for my contributions?

Maximum IRA contributions for 2022, if you’re under 50, are $6,000. If you are 50 or older, the limit increases to $7,000.

It is important to note that contributions are an aggregate, not an account-by-account basis, meaning the 2022 limit applies to ALL IRAs as a whole, not each one individually.
- Example: You are under 50 and contributed $3,000 to your Traditional IRA plus another $3,000 to your Roth IRA. This means your contributions are maxed out for the 2022 year.
A contribution phase-out for 2022 comes into play for Roth IRAs if you are filing as single with a modified adjusted gross income (MAGI) exceeding $129,000 or $204,000 if you are married filing jointly (MFJ).
For 2022, if you are single and your MAGI was $144,000+, or $214,000+ as MFJ, you are not eligible to make any Roth IRA contributions.
If your income surpasses these limits, there is still good news! Traditional IRAs do not have any income limits for contributions.

How can I optimize my benefits between my company retirement plan and personal IRAs?

More good news here. Participating in a company retirement plan does not affect your eligibility to make a Roth IRA contribution.

Additionally, you can fully deduct your Traditional IRA contributions if you and your spouse are MFJ and were not active participants in a company-sponsored plan, regardless of your income level.
However, a deductibility phase-out begins if you actively participated in your company’s retirement plan with MAGI exceeding $68,000 as a single individual or $109,000 if married.
Lastly, if you were not an active participant but your spouse was, the phase-out for deductions will begin if your MAGI reached $204,000.

What is changing in 2023?

Contribution amounts received a modest increase this year. For those under 50, the IRA contribution limit is now $6,500, which jumps to $7,500 if you are 50 or older. For Roth IRA contribution eligibility, your MAGI cannot exceed $153,000 if filing as a single or $228,000 if MFJ.

Everyone’s ability to contribute differs, meaning speaking with a qualified financial professional is essential to find the best course of action for your unique situation.

About Strategic

Founded in 1979, Strategic is a leading investment and wealth management firm managing and advising on total client assets of over $2 billion.

Overview

Disclosures

Strategic Financial Services, Inc. is registered with the Securities and Exchange Commission (SEC) as an Investment Advisor. The term “registered” signifies compliance with regulatory requirements and does not imply a certain level of skill or training.

The information provided on our website, including weekly market commentaries, financial planning articles, and other educational resources, is intended solely for educational purposes. It is designed to offer insights into financial planning and investment management, aiming to enhance understanding of financial concepts, strategies, and market trends. This content should not be interpreted as personalized investment advice or a recommendation for any specific strategy, financial planning approach, or investment product. Financial decisions are deeply personal and should be made considering the individual’s specific circumstances, goals, and risk tolerance. We recommend consulting with a professional financial advisor for personalized advice.

Please be aware that Strategic Financial Services, Inc. does not provide legal or tax advice. The content on this website is not intended to be used as such or as a substitute for legal or tax advice from a licensed professional. We advise seeking guidance from qualified legal and tax advisors regarding these matters.
Investment Risks and Portfolio Management.

The discussion of any investments on this website is for illustrative purposes only and provides no guarantee that the advisor will make any investments with the same or similar characteristics as those presented. The investments identified and described herein do not represent all the investments purchased or sold for client accounts. The selection of representative investments to discuss is based on various factors, including recent company news or earnings releases.

It should not be assumed that any investments discussed were or will be profitable. All investments involve risk, including the potential loss of principal. There is no assurance that investments mentioned will remain in client accounts at the time you view this information.

When index returns are mentioned on this site, they are provided as a general indicator of market conditions and are not representative of any client’s portfolio performance. Indices are unmanaged, do not incur management fees, costs, and expenses, and cannot be invested in directly. Therefore, their performance does not reflect the expenses associated with the management of an actual portfolio.

While index returns are used as a framework to report on general market conditions, they should not be construed as an indicator of future performance of any specific investment or portfolio. Discussion of index returns is intended to provide context and insight, not to suggest that clients will achieve similar results. Each client’s portfolio is managed according to their specific investment goals and financial situation.

The opinions and any forward-looking statements expressed in the articles and videos featured in our resource center are as of the date of publication. These statements are based on current laws, regulations, market conditions, and other relevant factors, including third-party data. Given the dynamic nature of financial and regulatory environments, as well as potential changes in market conditions or economic circumstances, the information provided may become outdated or may no longer be accurate.
We rely on third-party data to form our opinions and projections, which means that these are subject to the same uncertainties that affect all data-dependent analyses. As such, we advise readers to exercise caution and not rely solely on the statements made herein for making financial decisions. It is recommended that investors consult with a professional advisor who can help assess the relevance and accuracy of the content in light of the current economic climate and personal financial situation.

Our website contains links to third-party websites as a convenience to our users. Strategic Financial Services, Inc. does not control, endorse, or guarantee the content found on such sites. We are not responsible for the accuracy, legality, or content of the external site or for that of subsequent links.
Contact the external site for answers to questions regarding its content.
The inclusion of any link does not imply our endorsement of the site, nor does it imply any association with its operators. Use of any such linked website is at the user’s own risk.